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When Should You Invest In Debt Funds?

Dalal Street Investment Journal

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April 04, 2019

Debt funds have often found little presence in investors' portfolios. What investors fail to realise is that debt funds are equally important as they help balance the portfolio. One of the reasons for the imbalance in the portfolio is a lack of knowledge about when and why should one invest in debt funds. DSIJ delves on the importance of debt funds to help investors decide better while investing in various funds.

When Should You Invest In Debt Funds?

Debt funds are something which is usually recommended for a short-term period. As a thumb rule, it is said that if your investment time horizon is up to three years, then debt funds are the way to go. So, does it mean that debt funds are only meant for the short-term and, for the long term, these funds are not beneficial? This is not true. There are certain debt funds where you can take a position even if your investment horizon is long term.

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